Pound to US Dollar forecast: Best time to sell US Dollars for Pounds in 2019

GBP USD Exchange Rate Rebounds Above 1.31

Best time to buy Sterling with US Dollars

Pound to US dollar exchange rates are at the best time to sell the US dollar all year. The pound has weakened against the greenback on Brexit uncertainties, as investors remain nervous about which direction Brexit taking. The US dollar is also stronger as it appears the euro will remain weak, which has pushed EUR/USD lower.

Investors abandoning Euro

A key factor often on GBP/USD exchange rates is the behaviour on the EUR/USD pairing, as investors seek to abandon the euro with the market predicting further woes ahead for the single currency. Mario Draghi, the President of European Central Bank, has spoken this morning and pointed out that the ECB’s QE program, has ‘considerable headroom’.

QE or Quantitative Easing is a form of monetary policy whereby the central bank seeks to inject liquidity in to the financial system through the purchase of government debt, to help stimulate the economy. After a period of sluggish growth, QE has helped the Eurozone economy to pick up but now with Inflation low again, the ECB might be forced to act once again.

Global tensions affecting Pound to US Dollar rates

This has seen the euro weaker against the US dollar, which has weighed the USD down against the pound. Another factor on the exchange rate is the concerns that have been held over future direction of US monetary policy, with investors initially nervous of the US cutting rates, but now reassured by the fact the Eurozone could be embarking on more easing.

If you have a currency transfer involving the pound and the US dollar, there are a number of global events which are influencing the pairing, as well as the conventional Trade Wars, Trump and Brexit news.

GBP/USD levels sit just above 1.25 on the interbank rate, the lowest since Jan 3rd 2019, if you have a transfer buying or selling and wish for some practical information on appropriate strategy and the best exchange rates, then please do not hesitate to contact me directly.